Information Technology in Colombia

Analysis: IT Strengths and Weaknesses  

Competitive Advantages/Strong IT areas:

Colombia has not had a long past with IT issues, but neither has any of its neighbors in the Latin American region.  As privatization and deregulation engulfs the region, through wise government policies, Colombia stands to come out of the race in a fine position to develop its niches as a regional player in IT

Colombia has many natural advantages that transfer into the realm of IT.   Basically, but importantly, Colombia has its location and its own geography.   With a strategic position in South America and ports on both the Atlantic and Pacific coasts, Colombia can easily serve markets within the Andean Region, the Caribbean, Mercosur, Central America, NAFTA, Europe, and the Pacific Rim.

Further, Colombia has had to contend with its own geography in its dispersed locations and technologically lacking systems.  In doing so, Colombian engineers and IT professionals have overcome many complex and difficult issues in the realm of IT. 

Based upon this apparent shortcoming of low technological advancement and distance, Colombia stands to build and advantage regionally based upon its ability to overcome issues of distance and non integrating systems.

Other competitive advantages of Colombia in the IT area include the government's recent focus on telecommunications deregulation that has led to increased opportunities in IT areas.  Because the government has been liberal in its policies to open the country's economy, Colombia has been able to keep up with its larger and more advanced neighbors such as Chile, Argentina, and Venezuela in these issues.

Therefore, as far as an investment opportunities, we can make some basic assumptions:

       Colombia excels in distributing software and developing it.  By bringing technology to the country to foster software development, many positive returns could be realized.

        New IT manufacturing is a questionable area for Colombia.  The multinational giants have a presence in manufacturing and distribution.  For a company with a specific technology or market focus and the talent to support it there is opportunity.  For regular IT manufacturing, however, the market opportunities are not as readily available. 

Weaknesses

If we were to ask why nation is currently behind other nations globally in IT issues, we have some basic answers.

         Previous government policies and undeveloped infrastructure

Colombia has had to contend with previous government policies and its undeveloped infrastructure as a Latin American country.  While these issues have held the country back in the past, many opportunities are now available for Colombia to venture into regional and then global markets.  In comparison with its Latin American neighbors, Colombia is quite progressive and competitive in its government policies and infrastructure development.

        Education

However, Colombia will not be able to compete globally until it increases the overall education level of the country.  While Colombia is producing engineers and programmers and a large percentage of the population is literate, overall education levels need to improve in order for technology to be fully utilized.

        Global Image

Another issue that has held Colombia back from entering the global market has been Latin American political instability and the drug stigma.  While Colombia's economy is the most stable in the region, issues of political security still plague the nation, although not as much as in the past.  Further, Colombia's recognition as the country who exports 75% of the world's cocaine supply has not helped to improve its investment opportunities.

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Author: Heather Batyski

Last Update: December 18, 1998